The acid test or quick ratio is Cash + Marketable Securities + Accounts Receivable divided by Current Liabilities. 60-day certificates of deposit may be cash equivalents if under $100,000 or marketable securities if $100,000 and over. Either way, they are included when calculating the acid test ratio.
The acid test or quick ratio is Cash + Marketable Securities + Accounts Receivable divided by Current Liabilities. Six-month treasury bills are short-term marketable securities and so would be included when calculating the acid test ratio.
The acid test or quick ratio is Cash + Marketable Securities + Accounts Receivable divided by Current Liabilities. Accounts receivable are included when calculating the acid test ratio.
The acid test or quick ratio is Cash + Marketable Securities + Accounts Receivable divided by Current Liabilities. Prepaid insurance and other prepaids are not included in the calculation of the acid test ratio. Even though prepaid insurance is presented on the balance sheet as a current asset, it is not an asset that can be liquidated for cash (unless the insurance policy is cancelled, in which case some refund might be received). But it is not an easily liquidated current asset that can be routinely used to pay current liabilities.
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